It looks like no one will stump up the cash for the IMF, so the IMF will be allowed to create it. (Given a similar dilemma isn't that what our government is doing ? ) In reality this just steals it from those who hold cash. A form of global wealth redistribution. Must be Gordon Brown's idea.

Holding notes with the words "I promise to pay the bearer on demand" is getting more and more risky.

I fear that the US faces the same dilemma as the the British Empire did sixty years ago.

For the Brits the gradual increase in difficulty of holding an empire became suddenly impossible when the bills for two World Wars had to be paid. The result was a couple of decades of decline and not a little national humiliation - specifically at the Suez crisis.

The US national debt is insane,as is your balance of trade. All this is going to be made worse by your politicians denying even the benefits of creative destruction by allowing failing companies to go under.

This matters to the world as the US holds the world together and is the ultimate guarantor of law and order ( for which thanks ).

We are all in for an alarming ride.

I suspect the US may be fast approaching its Suez moment. The point when finance requires a pull back and reduction in military and diplomatic scope by the US.

No democracy for England

About Me

The pound in your pocket

"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists." James Callaghan

“The trouble with theoretical economists is that they don't understand that when you have a deficit, you can only finance it by borrowing, and you've got to persuade people that it's worth lending money to you and that they'll get their money back... there's no way of escaping it.” Dennis Healey during the 1976 Stirling Crisis.

"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens ... Lenin was certainly right. There is no subtler, no surer means of over-turning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
John Maynard Keynes, 1920.

"To preserve [the people's] independence, we must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude."
Thomas Jefferson, President of the United States of America,1801-1809.